Evolving trade undercurrents at the regional level: tides of India’s preferential trading in the Indian Ocean and beyond

Abstract

The Indian Ocean region has seen an exchange of goods and commodities since antiquity. Long before the emergence of modern nation states and the Westphalian concept of sovereignty, Indian territory saw a regular arrival of foreign merchants and commodities. At the same time, there is a long history of Indian merchants and commodities exploring the expanses of Southeast Asia, West Asia, Southeast Africa and beyond. The Indian Ocean region comprises a number of emerging and developing economies and is considered a dynamic region in terms of trade prospects. A number of preferential trade agreements are doing the round in this region which not only present a prospect to revive the age-old trade linkages within the Indian Ocean region but also foster a promising model of South-South cooperation. Being a large economy, India has an important role to play within the region. Not only that, platforms such as RCEP present India an opportunity to participate in rule-making in the realms of international economic law. Such engagements become even more significant when rule-making at the global trade institution WTO is experiencing a phase of stagnation and while the world is witnessing a wave of protectionism, isolationism, and very recently, a trade war between two giant economies.